Division B Earns a Contribution Margin of $200,000 and Has

question 90

Multiple Choice

Division B earns a contribution margin of $200,000 and has a divisional margin of $70,000. If Division B is closed, all of the direct divisional expenses and $110,000 of common expenses can be eliminated. These facts indicate that closing the division will cause the firm's operating income to

• A)increase by $90,000.
• B)decrease by $90,000.
• C)increase by $40,000.
• D)decrease by $40,000.

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Definitions:

Virtual Meetings

Conferences or discussions conducted via internet technologies, allowing participants to interact from different locations.

Ground Rules

Basic guidelines or agreed-upon principles set before starting a project, meeting, or group activity to ensure smooth operation.

Effective Meetings

Meetings that are purposefully planned and executed to achieve clear outcomes, making efficient use of participants' time and contributions.

Time Frames

The periods or durations in which specific tasks or goals should be completed or are expected to take place.